Open AI isn't Paying Off for Microsoft

Hey Strangers, #AI #openai #microsoft July 30 (Reuters) - Microsoft (MSFT.O), opens new tab said it would spend more money this fiscal year to build out AI infrastructure even as growth slowed in its cloud business, another sign the payoff from hefty investments in the technology may take longer than Wall Street had hoped.Shares fell 7% on the spending forecast but pared losses to trade down 4% after the bell on Tuesday after Microsoft said on a post-earnings call that Azure cloud growth would accelerate in the second half of fiscal 2025.Big technology companies have been pouring billions of dollars into data centers to capitalize on the generative AI boom. Google-parent Alphabet (GOOGL.O), opens new tab warned last week that its capital spending would stay elevated for the rest of the year.Microsoft said its capital spending rose 77.6% to $19 billion in its fiscal fourth quarter that ends June 30, with cloud and AI-related spending accounting for nearly all of the expenditures. For all of fiscal 2024, capital spending totaled $55.7 billion.Group CFO Amy Hood said the spending was necessary to support demand for AI services and the company was investing in assets that "will be monetized over 15 years and beyond."Still, investors who have run up Microsoft stock by nearly a quarter in the past 12 months on AI optimism were disappointed with the Azure growth. ======================================= My other podcast https://www.youtube.com/channel/UCKpvBEElSl1dD72Y5gtepkw ************************************************** Something Strange https://www.youtube.com/watch?v=GRjVc2TZqN4&t=4s ************************************************** article links: https://www.reuters.com/technology/microsoft-beats-quarterly-revenue-estimates-2024-07-30/ ====================================== Today is for push-ups and Programming and I am all done doing push-ups Discord https://discord.gg/MYvNgYYFxq TikTok https://www.tiktok.com/@strangestcoder Youtube https://www.youtube.com/@codingwithstrangers Twitch https://www.twitch.tv/CodingWithStrangers Twitter https://twitter.com/strangestcoder merch Support CodingWithStrangers IRL by purchasing some merch. All merch purchases include an alert: https://streamlabs.com/codingwithstrangers/merch Github Follow my works of chaos https://github.com/codingwithstrangers Tips https://streamlabs.com/codingwithstrangers/tip Patreon patreon.com/TheStrangers Timeline 00:00 intro 00:30 What Talking We Talking About 03:47 Article 13:06 My Thoughts 16:22 outro anything else? Take Care --- Send in a voice message: https://podcasters.spotify.com/pod/show/coding-with-strangers/message